PRESS RELEASES 2007

CONFERENCE CALL
Link will spawn new window
FOR IMMEDIATE RELEASE
February 22, 2007
ISSUED BY:   PG&E Corporation, 1-800-743-6397

PG&E CORP. REPORTS SOLID YEAR-END FINANCIAL RESULTS, RAISES EARNINGS GUIDANCE FOR 2007

  • Consolidated net income reported under GAAP was $2.76 per share for 2006, compared with $2.37 per share for the full year in 2005. (All “per share” amounts are presented on a diluted basis.)

  • Year-end net income was $991 million, compared with $917 million in 2005.

  • Earnings from operations for 2006 were $2.57 per share, compared with $2.34 for 2005.

  • The company is increasing guidance for 2007 earnings from operations by $0.05 per share to a range of $2.70-$2.80 per share.
Related Documents
Press Release Tables
Complete Earnings Tables

(San Francisco) -- PG&E Corporation’s (NYSE: PCG) consolidated net income reported in accordance with generally accepted accounting principles (GAAP) was $991 million, or $2.76 per share, for the full year 2006. This compares with $917 million, or $2.37 per share, for the full year 2005.

On a non-GAAP basis, PG&E Corporation’s earnings from operations for the year were $922 million, or $2.57 per share, compared with $906 million, or $2.34 per share, in 2005. This excludes certain income and expenses reported in GAAP net income that are not considered to be reflective of ongoing, core operations. For 2006, items impacting comparability primarily reflect the authorization for recovery of costs associated with electric transmission scheduling services provided by PG&E Corporation’s utility subsidiary, Pacific Gas and Electric Company, dating back to 1998 (see “Reconciliation of Earnings from Operations to Consolidated Net Income in Accordance with GAAP” in the accompanying financial tables).

“We delivered solid financial results in 2006 and will build on this momentum going forward,” said Peter A. Darbee, PG&E Corporation Chairman, CEO and President. “We’re entering 2007 with a sharp focus on advancing our business transformation strategy, while taking important leadership positions on issues like climate change and the environment. We’re at the forefront on these issues, because it’s consistent with our vision. It’s consistent with our values. And it also fits with our overall strategy, which emphasizes operational excellence and taking care of our customers. I’m confident that through our efforts, we will continue to deliver for our customers, employees, shareholders and our communities.”

The year-over-year increase in earnings per share predominantly reflects the positive effects of share repurchases in 2005, which resulted in fewer shares outstanding in 2006, in addition to the net effects of other items (see “Earnings per Common Share from Operations, Year-to-Date 2006 vs. Year-to-Date 2005” in the accompanying financial tables).

Earnings from operations for the year were not impacted by changes in the cost of electricity and natural gas provided to customers, or the cost of fuel to generate electricity. Increases or decreases in these expense categories are generally offset by revenue adjustments authorized by the California Public Utilities Commission (CPUC).

On a stand-alone basis in 2006, the utility’s GAAP results were $971 million, compared to $918 million for 2005.

QUARTER-OVER-QUARTER RESULTS

For the fourth quarter of 2006, PG&E Corporation reported GAAP net income of $152 million, or $0.43 per share, compared with $180 million, or $0.49 per share, in the same quarter of 2005.

On a non-GAAP basis, PG&E Corporation’s earnings from operations for the fourth quarter of 2006 were $170 million, or $0.48 per share, compared with $179 million, or $0.49 per share, during the fourth quarter of 2005 (see “Earnings per Common Share from Operations, Fourth Quarter 2006 vs. Fourth Quarter 2005” in the accompanying financial tables).

On a stand-alone basis, the utility’s GAAP results were $155 million for the fourth quarter of 2006, compared with $183 million in the same quarter of 2005.

2007 EARNINGS GUIDANCE

PG&E Corporation raised its guidance for 2007 earnings from operations by $0.05 per share, to a range of $2.70-$2.80. Guidance assumes that the utility’s rate base averages $17.3 billion in 2007, that the company earns its authorized return on equity of 11.35 percent, and that the proposed settlement agreement to resolve the utility’s 2007 general rate case is approved by the CPUC.

PG&E Corporation bases guidance on “earnings from operations” in order to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items that management believes do not reflect the normal course of operations. Earnings from operations are not a substitute or alternative for consolidated net income presented in accordance with GAAP (see the accompanying financial tables for a reconciliation of guidance of earnings from operations to guidance of consolidated net income in accordance with GAAP).

Supplemental Financial Information:

  • In addition to the financial information accompanying this release, an expanded package of supplemental financial and operational information for the quarter will be furnished to the Securities and Exchange Commission and also will be available shortly on PG&E Corporation’s website (www.pgecorp.com).

Conference Call with the Financial Community to Discuss Year-End and Fourth Quarter Results:

  • Today’s call at 11:30 a.m. Eastern time is open to the public on a listen-only basis via webcast. Please visit www.pgecorp.com for more information and instructions for accessing the webcast. The call will be archived on the website. Also, a toll-free replay will be accessible shortly after the live call through 9:00 p.m. EST, on February 28, 2007, by dialing 877-690-2089. International callers may dial 402-220-0645.

This press release contains forward-looking statements regarding management’s guidance for PG&E Corporation’s 2007 earnings per share from operations. These statements are based on current expectations and various assumptions which management believes are reasonable, including that Pacific Gas and Electric Company’s (Utility) rate base averages $17.3 billion in 2007, that the Utility earns its authorized rate of return on equity of 11.35 percent, and that the proposed settlement agreement to resolve the Utility’s 2007 general rate case is approved by the California Public Utilities Commission (CPUC). These statements and assumptions are necessarily subject to various risks and uncertainties, the realization or resolution of which are outside of management's control. Actual results may differ materially. Factors that could cause actual results to differ materially include:

  • the Utility’s ability to timely recover costs through rates;
  • the outcome of regulatory proceedings, including ratemaking proceedings pending at the CPUC and the Federal Energy Regulatory Commission;
  • the adequacy and price of electricity and natural gas supplies, and the ability of the Utility to manage and respond to the volatility of the electricity and natural gas markets;
  • the effect of weather, storms, earthquakes, fires, floods, disease, other natural disasters, explosions, accidents, mechanical breakdowns, acts of terrorism, and other events or hazards that could affect the Utility’s facilities and operations, its customers and third parties on which the Utility relies;
  • the potential impacts of climate change on the Utility’s electricity and natural gas operations;
  • changes in customer demand for electricity and natural gas resulting from unanticipated population growth or decline, general economic and financial market conditions, changes in technology including the development of alternative energy sources, or other reasons;
  • operating performance of the Utility’s Diablo Canyon nuclear generating facilities (Diablo Canyon), the occurrence of unplanned outages at Diablo Canyon, or the temporary or permanent cessation of operations at Diablo Canyon;
  • the ability of the Utility to recognize benefits from its initiatives to improve its business processes and customer service;
  • the ability of the Utility to timely complete its planned capital investment projects;
  • the impact of changes in federal or state laws, or their interpretation, on energy policy and the regulation of utilities and their holding companies;
  • the impact of changing wholesale electric or gas market rules, including the California Independent System Operator’s new rules to restructure the California wholesale electricity market;
  • how the CPUC administers the conditions imposed on PG&E Corporation when it became the Utility’s holding company;
  • the extent to which PG&E Corporation or the Utility incurs costs in connection with pending litigation that are not recoverable through rates, from third parties, or through insurance recoveries;
  • the ability of PG&E Corporation and/or the Utility to access capital markets and other sources of credit;
  • the impact of environmental laws and regulations and the costs of compliance and remediation; and
  • the effect of municipalization, direct access, community choice aggregation, or other forms of bypass.

 

Copyright © 2004 - PG&E Corporation. All Rights Reserved . feedback . privacy policy